All categories

2 years ago

Which of the following factors does not affect the initial market price of a stock?

Business

1 answer:

MissTica2 years ago

7 0

Answer:

The correct answer is (C)

Explanation:

Generally the common stocks worth per share is normally a limited quantity, for example, $0.05 or $0.01 and it has no association with the market estimation of the price of stock. The standard worth is once in a while referred to as the regular stocks. The par value has no connection with the price of the stock.

You might be interested in

A company’s fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product’s sales price is $4.50. W

vredina [299]

Solution:

Given information:

The fixed operating costs are$430,000.

The variable costs per unit are $2.95.

The selling price of the product is $4.50.

Calculation of the break-even point:

The formula to calculate the break-even point is:

Break-even point = Fixed costs / Selling price per unit -Variable costs per unit

= 430,000 / 4.50 - 2.95

= 430,000 / 1.55 = 277,419

Substitute $430,000 for the fixed costs, $2

4 0

2 years ago

Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $65. Rally purchases the s

Andrew [12]

Answer:

Rally must sell 1,080 units of Standard and 720 units of Deluxe

Explanation:

Standard Deluxe Total

Sales price per unit $45 $65

Less: Variable cost ($35) ($45)

Contribution Margin per unit $10 $20

Sales Mix units (A) $3 $2 $5

Contribution margin $30 $40 $70

Weighted average Contribution $14

per unit C= B/A

Appointment of fixed cost between standard and deluxe

Total Fixed cost = 14,700

Break even point = Fixed cost / Weighted average Contribution per unit

= 14,700 / 14

= 1,050

Apportionment of Break even point sales between Standard and deluxe in sales mix ratio (3:2)

Standard = 1,050 * 3/5 = 630

Deluxe = 1,050 * 2/3 = 420

Unit to be sold to get desired profit = Fixed cost + Desired profit / Weighted average Contribution per unit

= (14,700 + 10,500) / 14

= 1,800

Apportionment of Units to be sold to get desired profit between Standard and Deluxe in sales mix ratio (3:2)

Standard = 1,800 * 3/5 = 1,080

Deluxe = 1,800 * 2/5 = 720

To reach target operating income, Rally must sell 1,080 units of Standard and 720 units of Deluxe

4 0

2 years ago

QUESTION 9 of 10: When naming a business, you should:

frutty [35]

Think of a catchy slogan to go with it

3 0

2 years ago

Read 2 more answers

a manufacturer of games sell each copy for 21.95.the manufacturing cost of each copy is 14.92. monthly fixed cost is 8500. durin

natali 33 [55]

The break-even point is calculated as -

Break-even point (in units) = Fixed cost ÷ Contribution margin per unit

Here,

Selling price = $ 21.95

Variable cost (manufacturing costs) = $ 14.92 (since, costs bifurcation is not given, the manufacturing costs are taken as variable costs)

Contribution per unit = Selling price - Variable cost (manufacturing costs)

Contribution per unit = $ 7.03

Fixed cost (monthly) = $ 8500

Now,

Break-even point (in units) = $ 8,500 ÷ $ 7.03

Break-even point (in units) = 1,209.1 or 1210 games

7 0

2 years ago

term fixed price contract to build an office tower for $10,000,000. In the first year of the contract Tullis incurs $3,000,000

almond37 [142]

Answer: $750,000

Explanation:

Given that,

Fixed price contract = $10,000,000

Cost incurred in the first year = $3,000,000

Remaining costs to complete = $5,000,000

Tullis billed = $4,000,000 in year 1

Collected by the end of the year = $3,500,000

Percentage of work completed = $\frac{Expenditures\ Incurred\ from\ Inception\ to\ Date}{Total\ Estimated\ Costs\ for\ the\ Contract}$

= $\frac{3}{8} \times 100percent$

= 37.5%

Revenue recognized = 37.5% of $10,000,000

= $3,750,000

Income recognized = Revenue recognized - Cost incurred in the first year

= $3,750,000 - $3,000,000

= $750,000

8 0

2 years ago